Discuss whether an authorized agent can be held personally liable on a note if the agent did not sign his or her own name. Further discuss the kind of personal liability an agent has who simply signs his or her name to an instrument.

The authorized agent cannot be liable if he or she did not sign his or her own name to the instrument (UCC 3-401). If the authorized agent simply signs his or her own name to the instrument, he or she might be liable. If the holder of the instrument is a holder in due course and is not aware and does not have reason to know that the agent has signed on behalf of a principal, the agent may be held personally liable. If the holder of the instrument is not a holder in due course, the agent can usually escape liability by demonstrating that it was not the intent of the principal to hold the agent personally responsible. There is an exception to agent liability. Even if the holder is a holder in due course and the agent simply signed his or her name, the agent will not be liable under specific conditions. If the instrument is a check payable from the principal's account and the principal is clearly identified on the check, the agent will not be liable on the check [UCC 3-402(c)]. Finally, the agent can be personally liable if he or she was not authorized to sign on behalf of the principal.